- 4 - C. Medicare Guidelines and Petitioner’s Expensing Policy Petitioner was incorporated in 1982. Since then, petitioner has expensed all capital items for which it paid less than $500. Petitioner followed that practice in 1995 and 1996. Its expensing policy complies with Medicare guidelines for the capitalization of depreciable assets described above. The following chart shows the number, total cost, and average cost of office items petitioner bought in 1995 and 1996 which have an expected useful life of one year or longer and which cost less than $500 (the disputed assets): 1995 1996 Number of office and computer items costing less than $500 each 2,632 2,381 Total cost of office and computer items $467,944 $351,543 Average cost per item 177.79 147.65 Petitioner’s office items included bookcases, chairs, credenzas, desks, organizers, file cabinets, hutches, refrigerators, microwaves, serving carts, panels and accessories, tables, telephones, and typewriters. Petitioner’s computer items included modems, CD ROMs, hard drives, keyboards, motherboards, memory modules, outlets, processors, servers, software, and terminals.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011